From time 0 to time 10, payments are made at a rate of 10-t. The continuously compounded interest rate is 5%. Determine the present value of these payment at time 0.
A) 40.00
B) 42.61
C) 45.22
D) 47.83
E) 50.44
Correct answer: 47.83
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Please note: minor difference is due to rounding off.
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